Electronic Processing of Revenues and Expenditures, Including Texas.gov Portal Activity (APS 029)

Chargebacks

In 2025, DIR began transitioning from its existing vendor, NICUSA, to a new vendor, Fiserv, to process Texas.gov credit card transactions. The migration to the new vendor will occur gradually, and agencies will receive notification of the chargebacks from the Department of Information Resources (DIR). Both vendors are currently processing chargebacks, so for any specific chargeback, agencies should follow the chargeback process of the vendor that processed that transaction.

Note: Financial aspects of the credit card dispute (revocation of licenses, refunds of taxes, etc.) need to remain coordinated as they are under the current process. Agency personnel requiring access to CLX and the Dispute Manager tools to review and revoke licenses, etc. due to disputes need to coordinate access to CLX and the Dispute Manager tools with DIR and/or Fiserv as applicable.

Chargebacks Processed Through NICUSA

A chargeback occurs when a customer disputes a credit card charge through the credit card company. Once the chargeback is processed through the automated system, the Comptroller’s office will generate a transaction that is identical to the normal return item process. The chargeback amount will include the amount for the permit, license, tax or other charge as well as the online processing fee (if charged). The online processing fee is returned to the customer, but the agency will not receive a refund of processing costs on the original transaction.

A chargeback processes in USAS on an R88 document automatically. The R88 document will process against agency fund 9001. Because the chargeback decreases revenue, the agency transfers this reduction against the original received revenue. The following USAS coding information must be used to clear the amount with a document type J, batch type 2.

CAPPS agencies without cash receipts automatically import and load the R88 document from USAS to GL to record the chargeback using the appropriation numbers below. These journals are already recorded in USAS and have a blank T-code in CAPPS.

CAPPS agencies with cash receipts (CR) automatically load R88 documents from the CAPPS Texas.gov treasury load interface that applies the refund to the original deposit. CAPPS CR sends and posts these transactions to the CAPPS GL with a blank T-code.

Chargeback Credit

If an agency successfully disputes a chargeback, then a credit transaction will be generated automatically in USAS using an F8 document. This transaction will deposit funds to agency fund 9000.

Because the chargeback credit increases revenue, the agency transfers this amount to where the original deposit was received. The following coding information must be used to clear the amount in USAS with a document type J, batch type 2.

CAPPS agencies automatically import and load chargeback credits using an F8 document. Record this transaction with a blank T-code in CAPPS.

CAPPS agencies also create a journal entry with a document type J to record the transfer out of default for the chargeback credit using the appropriation numbers below. Create this journal entry with the original deposit T-code.

CAPPS cash receipt agencies create a cash receipt correction using a document type J to record the chargeback credit using the appropriation numbers below. Use a blank T-code for this journal entry.

Chargebacks Processed Through Fiserv

A chargeback occurs when a customer disputes a credit card charge through the credit card company. Once the credit card company determines the chargeback is valid, DIR bills the agency by providing an invoice for the net amount charged for purchased items (permit, license, tax or other charges) and will not include the online processing fee (if initially charged). The processing fee was already collected by the agency with the original transaction. DIR will provide a recurring transaction index (RTI) on the agency’s invoice along with access to the original USAS coding used for the transaction via Fiserv’s drilldown information. The agency then uses a T-code 222 along with the original coding block to pay the DIR invoice.

Note: Agencies have 20 days to pay the DIR invoice. Agencies are responsible for entering the correct payment date in the system; do not allow the standard default date of 30 days to be used for these DIR invoices.

Chargebacks: Processing Reversals for Assessed Convenience Fees**

• Document type: J
• Vendor ID: 33133133133
• Mail code: 000
• Legal descriptive text: required

For other questions about the new chargeback process, contact DIR.

Chargeback Processing in CAPPS

Chargebacks will be entered manually in CAPPS accounts payable for refund of revenue using a regular voucher style with a payment type T and an accounting entry template that assigns T-code 222 and document type T. DIR will provide the agency with an invoice including the RTI that will be coded on the refund voucher. Code the voucher with the same PCA, appropriation number, comptroller object and agency fund (that infers the original appropriated fund) as the original deposit that is being returned.

Note: Agencies will need to code a requested payment date on the chargeback voucher to pay the DIR invoice within the required 20-day period.

For CAPPS agencies with cash receipts, the chargeback is recorded and treated like a refund: The chargeback is recorded as a cash receipt correction, reversing out the original transaction amount minus the processing fee. The chargeback transaction is sent to the CAPPS general ledger with a blank T-code to indicate it does not interface to USAS. In addition, an agency with cash receipts must also record the DIR invoice in accounts payable for the DIR chargeback to process and the T transaction to be sent to USAS as mentioned above.